In the prior art, it is common to analyze sales or profits based on a particular type of a promotion. For example, a promotion may involve a Disney® movie wherein a toy or figure is given away with the purchase of one or more items.
One problem facing retail chains, restaurant chains, and franchise operations when promoting their business is being able to efficiently allocating scarce dollars to advertising. Allocation decisions include the outlet (radio, TV), the level of advertising or target rating points(TRP), geographical distribution (North/South, for example) and calendar allocation (summer/winter advertising, for example).
One specific problem in this type of analysis is that the promotions vary so that it is difficult to determine what aspects of the promotion affect sales.
Consequently, improvements are needed in determining what should be promoted and when. This invention covers a quantitative method for. determining the efficient allocation of advertising characteristics, i.e., what to promote when. The solution is achieved by looking at the characteristics of the promotions rather than the promotions themselves.